Thornburg Mortgage gets new wave of margin calls

RileyMcDermid

NEW YORK (MarketWatch) -- Thornburg Mortgage Inc.
TMA
said Monday that it has not yet been able to meet a new wave of margin calls worth at least $270 million and is facing a liquidity shortage in its ability to meet any new outstanding margin calls. Thornburg said in a filing with the Securities and Exchange Commission on Feb. 28 that it had received margin calls in excess of $300 million between Feb. 14 and Feb. 27, but the mortgage company said Monday that due to the costs of meeting those obligations, Thornburg has been left with limited available liquidity. "There is no assurance as to Thornburg Mortgage's ability to sell such assets or raise additional funds in the current market at acceptable prices, or to raise additional capital," the company said in a statement. "If the company is unable to satisfy outstanding margin calls, any or all of its reverse repurchase agreement counterparties may declare an event of default and liquidate the pledged securities." On Friday, credit rating agency Standard & Poor's cut Thornburg's rating because of the increasing number of margin calls it is facing.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.